Purplebricks’ takeover bid withdrawn as ‘finances worse than expected’
Lecram Holdings has taken its offer for Purplebricks' off the table after just five days.
One of the two bidders for Purplebricks has pulled out just five days after announcing an intended offer.
Lecram Holdings – outspoken opponent of Chairman Paul Pindar (pictured) – says the situation at Purplebricks is “worse than expected”.
“The reason leading to Lecram’s decision not to proceed is, principally, that the financial condition of Purplebricks was found to be significantly worse than expected,” a statement to the City from Lecram read.
It said last Friday that the other offer from Strike was “not in the best interests of shareholders and could end up with them receiving nothing.
“We believe our offer gives shareholders the certainty of cash now rather than vague promises from a discredited board of something more somewhere down the line,” it said.
It now leaves rival agency Strike as the only candidate to take over ahead of a general meeting on Friday.
Rejected
Lecram, which is a shareholder in the agency, has been very active in pushing for change at the top of Purplebricks.
Adam Smith of Lecram proposed an alternative chairman to incumbent Paul Pindar late last year, a move that was rejected by shareholders.
A statement from Purplebricks released this morning says: “Purplebricks announces, further to the announcement on 26 May 2023 outlining an indicative proposal from Lecram Holdings Limited to acquire the entire issued, and to be issued, share capital of the company, Lecram have informed the board that they have withdrawn their proposal and at the current time do not intend to make an offer for Purplebricks.”
